HI HB2691

Establishes a "smoking establishment permit" system administered by the Department of Taxation, effective July 1, 2010, allowing certain liquor license holders to permit smoking in their establishments.

Sets annual permit fees of $1,000 for standard bars and clubs, $2,000 for certain premises, and $3,000 for cabarets, with fees collected and deposited into the Hawaii organ and tissue education special fund.

Permits the Department of Taxation to retain up to 10% of collected fees for administrative costs, with remaining funds distributed yearly to organ procurement organizations.

Requires all permitted smoking establishments to post a minimum 8.5" x 11" sign stating "THIS IS A SMOKER FRIENDLY BUSINESS. SMOKING PERMITTED BY LAW" at all entrances.

Prohibits counties from strictly prohibiting the operation of establishments holding valid smoking establishment permits, though counties may still enact ordinances as protective as the state law.